How does PGC's earnings performance in 2024 compare to 2023?

Peapack-Gladstone Financial Corporation (PGC) demonstrated a decline in net income and earnings per share (EPS) in 2024 compared to 2023, with revenue showing a mixed performance.

1. Net Income and EPS Comparison:
   • In Q3 2023, PGC recorded a net income of $20.1 million and EPS of $1.09.
   • By Q3 2024, net income decreased to $8.8 million, and EPS reduced to $0.49.
   • For Q2 2024, net income was $7.5 million, down from $13.1 million in Q2 2023.
   • EPS in Q2 2024 was $0.42, compared to $0.73 in Q2 2023.

2. Revenue Comparison:

   • PGC’s revenue for Q3 2023 was $55.9 million.
   • Q3 2024 revenue increased to $55.4 million, which, when adjusted for inflation, shows a real growth of approximately 11%.
   • Q2 2024 revenue was $56.6 million.
   • Q1 2024 revenue was $52.4 million.
   • Q2 2023 revenue was $57.5 million.

3. Profit Margin Analysis:

   • The net interest margin (NIM) for Q3 2023 was 2.28%, down from 2.49% in Q2 2023 and 2.98% in Q1 2023.
   • Q2 2024 NIM increased to 2.25%.
   • Profit margin decreased from 24% in Q2 2023 to 14% in Q2 2024.
   • The NIM for Q1 2024 was not available, but considering the trend, it might also have declined.

4. Other Financial Metrics:

   • PGC's return on average assets (ROA) was 0.54% and return on average equity (ROE) was 6.20% in Q3 2023.
   • In Q3 2024, ROA and ROE decreased to 0.54% and 6.20%, respectively.
   • The company's liquidity position remained strong with a balance sheet liquidity of $756 million as of September 30, 2023.

5. Institutional Activity and Dividends:

   • Institutional investors showed confidence with increases in holdings by Brandywine Global Investment Management LLC and Wedge Capital Management L L P NC.
   • PGC declared a dividend of $0.05 per share in August 2024, yielding 0.75%.

In conclusion, while PGC experienced revenue growth in some quarters of 2024, net income and EPS declined significantly compared to 2023. Profit margins also narrowed, primarily due to higher expenses. However, the bank's liquidity position remained strong, and institutional investors demonstrated confidence in the company.